Price $20,000, $4,000 down, owner financed Closing $1,500 Est. Repairs $28,500 roughly $34k in ARV $85k Rent $875 Taxes $95 Insurance $75 Termite $50 Repairs $80 Cap. Ex. $100 Vacancy $87 Property Mgmt $87 Total $574 $86/month owner financed loan Monthly cash flow $215 CoC 7% with management/ 10.6% self-managed Refi $34k leaving 20% in ($7k), CoC jumps to 33%, $28,000 back outThoughts?

Unfortunately, the deal doesn't even make "cents" from a rental point of view...but it does make "dollars" from a flip point of view...so go "make some dollars".

Subtract the Debt Service from the REFI at $68k and you're about $270k/month negative cash flow. Still looking for deals like this? If you are, I can find a lot of them for you.

OP please clarify. the selling price plus rehab ALL IN price of the deal is $48,500? the arv is 85K and rent is 875. can't you get the home then refi for 68K if this is correct I would take this deal down all day long, in fact this is the exact type of deal I look for. @Joe Villeneuve what am I missing?

PM me. We'll talk if you're interested.

@Joe Villeneuve, I'm sure that I'm not the only person to ask you this, so point me to other sources if you don't want to answer. I might take the summer to flip this house, and, my heart is really in the buy and hold direction.What should I look for in the buy and holds? I can find cheap houses in the bad part of town for 20-30k that will rent for $650, but they have the same small 100-200 monthly cash flow and high cap ex that you don't like in this deal. Average rent in my town is around $800/mo. Get much above $1,200 and you are looking at renters who can afford to buy. Are multifamily my only hope?

OK. Here are a couple of problems you are going to run into when you try to get it REFI's: 1 - You're going to be hard pressed to get a loan under $50k 2 - ...this is the big one, if you will already have seller financing in place, and that seller financing has a lien on the property, you are going to be even harder pressed (I would use the word "impossible") to get that REFI loan. The lender won't take a 2nd position...ever.

@Amanda Gust Will the property cash flow after refinancing? That is an important question that unless I missed it, has not been answered.

@Joe Villeneuve, I just read your comment about flip vs hold. Thank you, you've cleared up my misunderstanding of equity. And no, I haven't talked refinance with anyone. I'm still analyzing whether this deal makes any sort of sense. I have more variables to mess with. The downstairs could become a separate studio apartment. I don't know what that would cost, or what that would do to my ROI. I also want to look at more comps to be more confident in my ARV if this would be a flip. My remodel money estimate was assuming bringing bathrooms to rental level, not retail polished level.

Let me get this straight. You would be refinancing $28k, leaving $7k of your own cash still in the deal? That would mean you would end up putting $7k in cash into the deal. What would your mortgage payments be per month on the REFI. There's an even bigger problem...actually more than one, regarding the REFI financing. Question: Have you discussed these exact numbers with the source you will be using for your REFI loan yet?